Notes

# **The illusion of wealth: to look rich**

DeMarco condemns the toxicity of the consumer society and sets the record straight on wealth. It is determined by a wealth of relationships, health, and freedom and by no means just material possessions.

# **Money does not bring happiness….and poverty?**

The trinity of wealth is, therefore:

- Freedom
- Health
- Relationships

Using money intelligently enriches the trinity of wealth. Money can buy time, which increases your freedom. For example, your boss buys your time which increases his freedom.

The roadside makes us dependent on dream sellers

MJ DeMarco never promises that making money was easy, he merely says the process can be fast, which is very different.
Those who use the roadside are focused on the result (profits). The Millionaire Fastlane focuses you on the necessary process by first ignoring the result.

# **The law of the victim**

“Hitch-hikers don’t drive”. Using another metaphor to underscore all his work, MJ DeMarco continues to point out the state of mind you need to change if you want to move from the roadside to the fortune fast lane.

To be on the motorway, you have to drive, and by definition, if you walk on the roadside, you are not driving. To drive is to take responsibility and to stop behaving like a victim.

Just because you exist doesn’t mean you deserve anything. The roadside is a den of selfish narcissists.

One of the key points is to maintain control of your road, your vehicle, and your direction. You’ve got it: MJ condemns delegation of his financial future to other people.

Only you should be at the wheel of your vehicle!

# **Part 4: Mediocrity: the slow lane**

# **The lie that you have been sold: the slow lane**

The slow lane driver accepts the sacrifice of their finest years of youth in the hope of having a better life later. But a plan that takes this long and relies on so many uncontrollable factors is risky. Economic conditions or layoffs can quickly jeopardise you.

Time is the most precious resource of all as it is the only one that is limited. Which makes any type of work that is time-correlated inefficient, when it comes to being rich.

Experience comes from what you do in life, not from what you do in your work to pay your bills. What experience is most likely to make you rich? Your daily tasks routineat work or the experience gained from your own creations and growth that can make you financially independent?

Being an employee is like being the passenger in the back of a Pick-Up truck. At the slightest jolt (dismissal, illness) you are ejected.

# **Part 5: The wealth map: the fast lane**

The formula for wealth in the fast lane is as follows:

Wealth = net income + asset value

Which identifies two elements to work with: net income and asset value.

Net income = units sold x earnings per unit

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Here’s an example: If you want to sell products on the internet, you can create wealth by increasing the number of units sold (with good marketing, results, testimonials, etc) and/or with a product price increase.

Compared to a salary, you can act upon these two elements with no time correlation!

Mj DeMarco shows us that an increase of just 1% of sales brought in $480 a day, which is $14,400 a month! How much time would an employed manager take to reach this amount? And by increasing the price by $0.5 per sold product, he moves from earning $8000 a day to $10,800, which is a total of $84,000 extra per month!

You start to see the importance of these two levers when you create and offer things to people.

(price, qty sold)

Because here is the fast lane: work out the needs of consumers and meet them.

Do you need to be passionate? No!

Again, this is a conflicting statement! Passion does not necessarily fill the tills. The “money tree” you’re going to create, does though.

# **The 5 entrepreneurial models most eligible for the fast lane**

MJ selects 5 types of “money tree” for you to create that are eligible for the fast lane to fortune:

**1. Rentals systems**

Rental investments, patents, trademarks are ideas of rental systems

**2. Software or programming systems**

iPhone apps or computer programmes for example.

**3. Information systems (*blogs that sell services, does that ring any bells?)***

Pretty obvious!

**4. Affiliation, the franchise**

The creation of network marketing, pay others to sell your products with a commission when you can’t do it yourself.

**5. Human resource systems (a company self-managed by good salary-earners)**

MJ DeMarco uses the example of a reader of his forum who has several fully managed storage warehouses across the country.

# **The real law of wealth**

To generate maximum wealth, you need to use two parameters:

1. Amplitude (number of units sold)
2. Magnitude (the sale price)

Which means that to gain millions, you need to service millions of people.

If you open a shop in your town, your amplitude will be limited. If you open 2, it will double. And if you sell your products on the internet, your potential amplitude is worldwide!

To influence the magnitude (the price) of your wealth, you need to create value and constantly improve your products and services but also offer services not being supplied by competitors.

There are also marketing techniques to increase the unit price.

# **Part 6: Your vehicle: you!**

# **The power of choice**

Choices shape your direction as well as how you clean your windshield as you drivealong the motorway. Once you agree to take responsibility and avoid the victim’s law, you must face every consequence of each choice.

Throughout his life, MJ created two tools to help him face important choices. In this chapter, he shares them with us.

The first is to look at “the worst possible scenario”. It breaks down into 3 questions, which you need to be able to answer when you face a difficult choice, and you don’t have much time to think.

1. What is the worst possible consequence of this choice?
2. What is the probability of this consequence?
3. Is it an acceptable risk?

The answer to these questions shouldn’t more than a few seconds.

When the choices take longer to decide however, DeMarco created a decision analysis matrix. This is his second tool. Full of common sense, it has the advantage of providing the best solution for you to make a big decision.

_____________________
Using an example he lived through, the author demonstrates this famous matrix. When he was going through a deep depression he hesitated between two hard choices, with serious consequences to his future. Stay in Chicago or move far to the south, to Phoenix (Arizona).


You then fill in the “factors” column with important elements to consider when you make your decision. Here’s his example:


You’ve established the important elements to bear in mind for the decision you are going to make. Now, you have to settle on their importance by allocating to each of them, a coefficient from 1 to 10.

# **This is what it looked like for MJ:**


As you can see, not all the factors have the same importance for MJ. And it would be the same for you. Now you need to decide on their respective weights. In the end, this matrix looks a bit like one of our old school reports!

Once you’ve done this, you need to be honest and award points to each of the two (or more) options. Here’s what it looked like for MJ.


In the table above the figures in brackets are the totals of the points multiplied by the coefficient of each factor. At the bottom of the table are the totals, indicating the best choice according to your criteria. Right in front of you, in black and white.

Despite certain factors counting a lot towards Chicago for MJ (proximity to family, activities, and hobbies, etc) the best choice ends up as a move to Phoenix.

For only 2 points the author took the step and urges us to do the same, to avoid “no choices” or to allow ourselves to be governed by fear.

This matrix should only be used as a last resort when it comes to big decisions about the big picture of your future.

It would make no sense to use this for every little decision. For those, MJ DeMarco suggests that you use the worst-case scenario analysis.

# **Change the way the wind blows.**

to succeed, you sometimes have to cut yourself off from certain toxic relationships even if they are part of your entourage.

Out of fear, jealousy or concern for your well being, even your loved ones can slow your enthusiasm down when it comes to the fortune fast lane.

These people can be:

1. Friends and family that don’t understand you
2. The education system that preaches a salaried life and the slow lane.
3. Your parents that think that wealth is for other people
4. Wealth gurus that state that $100 invested today will be worth 10 million in 50 years
5. Your environment

You mustn’t hesitate to close your vehicle’s door to these “headwinds”. Instead, look for winds that travel in your direction. That is to say, successful people that operate in your sphere, or entrepreneur clubs, etc.

The people you meet on the road will be like brothers-in-arms on the battlefield. They can save your life, help you stay alive, or lead to your peril. You have to choose them keeping this in mind.

# **Your essential fuel: time**

You should see time as the most precious of all your riches. Money is infinite in the world, whereas time is not.

To illustrate this principle, the author recalls a scene from the Titanic film.

As the ship slips inexorably into the freezing sea, the noble and rich run to the rescue boats. They try to buy their seat from the ship’s officer.

> He answers: “your money cannot save you more than me!”
>

It’s with this comeback that entrepreneurs in the fortune Fastlane see the importance of time. And you should do the same instead of waiting in a queue for 1 hour for your free bucket of chicken wings!

# **Change your oil regularly!**

What is your engine’s motor oil? Your education! Learning useful information for your business or your “money tree” is essential.

Education is a strong lever that will distinguish between a vehicle (you) that takes you to your destination (wealth), or a vehicle that perishes in the middle of the road.

Paying too much to change your oil is counter-productive. Learn to appreciate the difference between something impacting your goal as opposed to a waste of time and money.

(distinction between good and bad intellectual investments.)

# **The red line: the accelerator**

The heart of the problem for many entrepreneurs (especially web entrepreneurs!): Are you prepared to go beyond the red line? The one that separates the traditional town speed limit, from the motorway one?

If you drive at 50km/h, you will take ages to get to your destination.

Embedded in this metaphor is the difference between success and failure. Flooring the pedal means you take action, more action, and even further action. You should think of the value of your ideas as 0.

The author even thinks good ideas are like brain farts!

The only thing that counts is your ability to transform these ideas into a workflow.

Are you merely “interested” or are you “invested” in your entrepreneurial project?

The motorway is only open to those that are invested. You don’t drive at 50km/h on the motorway.

**Some clues:**

- Every time you say “one day” you put your foot on the brakes.
- Every time you wait for an event to take place before you launch something, you put your foot on the brakes.

The timing is never perfect and lady luck doesn’t shine her light on those that wait for the right moment, but rather on those that seize it.

taking intelligent and calculated risks, the gains from which far surpass the possible losses.

# **Part 7: the road to riches**

Having the right state of mind is not enough. You have to have a project that holds water.

What are the 5 commandments for an idea to be worthy of the millionaire fast lane?

1. The need commandment
2. The entry commandment
3. The control commandment
4. The ladder commandment
5. The time commandment

# **The need commandment**

The first commandment (and the most important) is need. Does your business or idea address a need? Does it make life easier or more difficult?

The biggest problem with people who take the plunge is that they seek to “make money” first and foremost, which makes them selfish and violates the need commandment.

To attract money, you need to focus your efforts on service and meeting demand, ignoring future results. Once again, it is a question of focusing on the process and not the results.

You must make your journey your passion and not direct your path towards your passion.

# **The entry commandment**

How easy is it for your business to launch? Is it difficult to do the same thing as you (a lot of barriers to entry, especially the required education, how about that!) or could anyone set up the same business as you?

If it’s easy to imitate you, the competition increases and your path weakens. So you need to find a different route or to strengthen it by adding more expertise that isn’t easily copied.

Beware of “everyone does it”, this is a sign that this path is highly competitive, the margins are low and it is extremely difficult to stand out.

a niche market requiring some know-how is much more viable than lessons on how to win on the stock market with a DVD.

Does your “money tree” idea have strong or weak barriers to entry? Are you going for a saturated or specific sector?

# **The control commandment**

Are you a leader or a follower? Are you the head of your company or is it others?

Does your project rely on the actions of others or do you have control of your vehicle? Are you a hitchhiker or a driver?

After working out whether you are a driver or passenger in your vehicle, you must be careful.

You need to create affiliations, not follow them. You have to create your brand and not sell others’ brands. And you must have the freedom to choose your direction and not be influenced by others.

# **The ladder commandment**

What is the scope of your business?

Is it hyper-local, local, county-wide, regional, national, international?

If you want to make millions, you have to impact the lives of millions

If you invent a gadget that gets used by millions of people, the value of this gadget doesn’t matter, you’ll be on the path to millions.

# **The time commandment**

As you’ve previously read, time is the most precious of all riches. Is your idea linked to time? Can your business be automated (without losing control!)? Are you able to recruit for tasks that are time-consuming and non-essential?

Does your business allow you to earn money even when you’re not there?

A business that is “locked” into a time stream is called a job.

# **The three ‘I’s of the millionaire fast lane.**

As the author referred to in the control commandment, to end up with millions in the bank, you need to be a leader and not a follower. For this, there is the rule of three “I”s.

- Internet
- Innovation
- Iterations

Using all three at the same time isn’t obligatory but can increase your speed a lot!

The role of the Internet has already been widely debated above. The Internet simply allows you to reach the biggest possible market and scale with your products. It’s the best way to impact millions of lives around the world.

Innovation is what will keep you ahead of your competition. You should re-invest the money you make from your “money tree” in innovation and research to keep improving your services. Your line of sight should be to better serve, serve more, and address more needs.

Iteration is a scientific word that means to try again with the same intention, by changing a mere detail.

Sometimes you can’t reach your goals. The difference between success and failure lies in persistence by changing details. Giving up at the first hurdle and going in another direction will only slow you down.

If your business follows the 5 commandments above, the only thing that matters is your ability to adapt and to change details so that they meet the expectations of your prospects.

Iterations can also happen in other people’s products! This is a bit like innovation, but improving an existing product is a powerful lever for getting rich.

Know how to grab opportunities and take on challenges you couldn’t envisage previously, as, before getting onto the motorway you were too preoccupied with “making money” rather than addressing a need.

# **How do you find the right roads to the millionaire fast lane?**

It’s simple. If you use the state of mind the author suggests, you will discover the access roads.

The opportunities are all around you. Listen more carefully:

- Every time that you or someone else says: “that’s rubbish…”
- Every time that you or someone else says: “It would be good if…”
- Same with “I’ve had enough of…”
- It’s much the same with questions like: “why does it work that way?”
- Every time that you (or someone else) feels frustration about a situation

All these points provide opportunities to take an access road that may lead to the millionaire motorway!

# **Part 8: Your speed!**

In the last section, MJ warns against the dangers of selling without paying attention to customer feedback.

Believe it or not, they are the ones who will make or break your fortune. With this much power, all comments should be listened to.

There are 4 types of negative feedback that you need to keep in mind if you want to reach maximum speed in your fast lane.

# **1- Complaints about change**

You have to innovate in your business and that means change. The changes are sure to fuel complaints, as many people don’t like changes to their favourite servicewhen “it works well.”

These complaints are the most difficult ones to deal with, as often they are not justified. Most of the time they are just expressions of fear. But sometimes you get terrible feedback on a change you have made. You then have to “go back” and look for the failures.

# **2- Complaints about expectations**

This is negative feedback from your customers because they expected to get something and didn’t get what they expected! This feedback is serious and demonstrates an urgent need for price changes or an upgrade to your product range, or a change in your marketing.

# **3- Complaints about disappointments**

This is the most hurtful feedback (your product is rubbish because it doesn’t do this, etc…) but also the most constructive. Don’t forget that every disappointment is a call for improvement and a commercial opportunity.

If you ignore these complaints, the competition will work hard to solve these shortfalls and take some of your market share.

# **4- Fraudsters**

Not really complaints, but you will invariably come across free-riders who will try to get products that they haven’t paid for, or will opt for the refund guarantee on the last day, or else threaten to sue you for violation of various rights.

No one wants these kinds of clients but they are part of the mix, and you can learn a lot from the way you deal with them…

Lie no 5: The best products and services make the most money

# **Lie no 6: With money you secure and provide for your existence**

You exist with or without money! As for protection, life is not a permanent cocoon.

# **Lie no 7: Money is security**

No amount of money will ever offer you inner security

# **Lie no 17: You need money, a business plan, capital and a budget to start a project**

Successful people did not start with money and a business plan, but by focussing all their attention on achieving a well-defined project, with or without resources at the outset. **The difficulty starts when finances become the number 1 issue instead of being at the service of the project objective.**

# **Lie no 16: Work and earn money, to do what you want**

**People who do what they want do so because they have decided to do so, with or without money. Their desires, their dreams are more important than money.**

# **Lie no 18: Everyone can make a profit**

Financially, if someone makes money, another person loses money — that is mathematical logic. It is neither good nor bad; it’s just the way it is. **Getting into a mental framework in which everyone in the world can make a profit at the same time is also a way of stigmatising losses, which is false. Loss is part of the cycle.** We cannot all be in the same place at the same time without creating severe imbalance.

(I WILL ACCUMULATE 50 BILL TO USE FOR GOOD, RATHER THAN U USE FOR EVIL)

# **Lie no 20: The price of goods and services is mainly composed of the costs of providing them**

Each supplier involved in the chain of production pays interest (on a loan, rent, a mortgage) and incorporates it to the prices that the next link in the chain has to pay. The end of the chain (you and I) pays the cumulative interest In addition to this, a small minority of the population receives as much or more in interest than it pays (the richest 20% according to this economist’s calculations).

# **Lie no 21: Money is independence**

It is easy to believe this, but life is neither better nor worse when you can run your own business, aware that you are the source of your own independence and taking responsibility for what comes from that.

Money has nothing to do with independence, which is a state of mind.

# **Lie no 22: Money is dependence**

Dependence is not the opposite of independence. It is a reality that is an integral part of our lives, making us depend on each other in what we do. From this point of view**, money plays a role in our exchanges, but what we put into the relationship is what creates dependence or not.**

# **Lie no 27: The lies about abundance**

For the author, it is important to recognise that abundance is our birthright and that it is part of our life, both positive and negative. The assumption is that our world includes just as much that is beautiful as what is ugly, what is easy as much as what is difficult.

Our world today is built on a vision that highlights (the fear of) shortage and places us in a state of survival in the hope of a better future. Most of us live our daily lives in this state of survival and the most common economic theories are built on it too.

**But the illusion is that the money is never in itself the value or the thing that you may have thought it up to now. Money is a blank screen onto which you project your thoughts, your value or something else.** So, **if you say that money is a medium of exchange, then money assumes this function atyour service**. But it is just one function among others.

**You yourself are the medium of exchange and you will remain that way, with or without money**. And we forget that we are the source of our projections, so we come to consider that the “medium of exchange” function of money is a fundamental characteristic of the very nature of money. The relationship that you had with money when you were the source of the value projected onto it has disappeared and it seems to taken on a life of its own.

In practice, you now need money because it is a “medium of exchange”. You need to make some, compete for it or even fight with others to get it. You have forgotten that you yourself are the medium of exchange.

**The pursuit of money is, in reality, nothing more and nothing less than a manifestation of a loss of connection with the value in question that you yourself possess.**

## **The antidote to this projection mechanism**

It is simple and precise. **Look at your list again. Let’s say that you wrote “Money is the root of all evil” and “Money is freedom”.**

**Replace “money” with “I” and this becomes “I am the root of all evil”, and “I am freedom”.**

[Book review : 30 lies about money](https://medium.com/@olivierrolanden/book-review-30-lies-about-money-7015344375b7)

This proposal for reappropriation is what shifted things for me in my way of working and the way I guide people in my consultations. I have seen how working on the relationship with money is like a laser beam that takes us very quickly to the heart of what is not working inside us, whether emotions or beliefs.

documentary “Inside Job”

[](https://medium.com/@olivierrolanden/disruption-learning-from-my-bad-experience-with-chase-c5115080ca24)